Consultation opens today on choosing a name for the new unitary authority which takes over the running of all council services in April.

Coun Ian Tompkins said claims of a £4million bill were way off the mark and the process would cost in the region of £27,000.

"It is natural that in today's global financial climate people are worried about costs, and this is clearly an emotive issue," he said.

"However, I can reassure residents that reported claims that it will cost £4million to call the new authority Northumberland Council are absolute rubbish.

"Officer advice is that the net cost of giving the new council a new name would actually be in the region of £27,000, out of a total revenue budget of £500million."

Members of Northumberland's transition authority last month agreed to seek the views of the public and staff before making a final decision on a name for the new unitary authority.

Coun Thompkins said: "Local government reorganisation is not about Northumberland County Council absorbing the district councils. The county and district councils will cease to exist and will be replaced by a single new authority with new standards and new ways of doing things. That is why I feel it is important that the new council has a name that reflects this, ensuring residents know who is responsible for delivering their services as well as paying heed to the financial climate that we are all in.

"Shortly residents will be asked whether they think the new council should be called Northumberland County Council – the name of the existing county council – or Northumberland Council."

Questionnaires will be sent to all 1,000 members of the citizens' panel while members of the public will be able to comment via an online poll at www.northumberland.gov.uk

Employees of all seven councils due to be abolished can also take part through the council intranet. The consultation will continue until December 4.